ching yee fu: next 4 billion

The Next 4 Billion

A Social and Entrepreneurial Challenge

Has capitalism benefitted most of the people on this planet?

30,000 children dying every day from starvation

40% of the world’s 6.5 billion people live in poverty (up 36% from 1981)

16.7% live in extreme poverty

The answer is NO.

The Bottom of the Pyramid

Like the tip of an iceberg, the opportunity remains invisible to the corporate world

C.K. Prahalad & Stuart Hart

The Next 4 Billion

The BOP market = $5 trillion global consumer market of 4 billion people

Asia is world’s largest BOP market: 2.86 billion people

Significant unmet needs across various sectors Food Healthcare ICT …

BOP penalty

Hidden purchasing power

Social Issues, Economic Issues

Businesses increasingly operate amidst social challenges – armed conflict, cultural disputes, poverty, environmental issues

Corporate and social misalignments are costly Diamond conflicts Oil & Gas companies

Internal pressure to “make a difference” Employees Shareholders

Social issues ARE economic issues

A Challenge to Entrepreneurs

Large market, mostly untapped

Multiple sectors

Right here in Asia (and Africa too)

Make a difference!

Businesses have the right combination of technology, resources and global reach

Businesses today are the only entities that possess the necessary combination required to improve the lives of 4 billion people in the BOP –

Stuart Hart

Business Model Examples

HealthStore Foundation, Kenya

Smart Communications, Philippines

Prodem FFP, Bolivia

Many businesses already serve the BOP

HealthStore Foundation, Kenya

Biz Model: Micro franchising – HealthStore and CFW Shops

Providing income to nurses who operate CFW shops

Providing healthcare services to rural Kenya

Sustainable model

Smart Communications, Philippines

Biz Model: Targeted at the BOP

Telecom in a sachet

Sari-sari store owners, students, roving agents

Providing employment

Providing ICT services to BOP consumers

Prodem FFP, Bolivia

Biz model: Targeted at BOP consumers and small businesses

Innovative offerings – ATMs for the illiterate, low fees, broad reach into rural Bolivia

Financial services for rural Bolivia and the BOP

Trusted institution

Social EntrepreneurshipMay 9, 2009

It is true that economic and social objectives have long been seen as distinct and often competing. But this is a false dichotomy; it

represents an increasingly obsolete perspective in a world of

open, knowledge-based competition

– Michael E. Porter and Mark R. Kramer

May 9 – First Social Entrepreneurship Event